Information on private finance initiative (PFI) and local improvement finance trust (LIFT) schemes under construction (i.e. not yet operational) with their respective capital values and equity partners has been placed in the Library.
The LIFT schemes shown in the Library document are those currently under construction. The planning of LIFT schemes is a local responsibility, and while the Department is aware that many LIFT schemes are currently being planned, it does not hold a comprehensive record of these potential schemes.
PFI schemes in the planning stage, either actively preparing an initial outline business case or currently in procurement, are shown in the following table.
Commissioning body OBC approved/to be approved Estimated total capital value(£ millions) Royal National Orthopaedic Hospital NHS Trust 2009 143 North Bristol/South Gloucestershire PCTs May 2007 Financial close not expected within next 12 months 475 Southampton University Hospitals NHS Trust End of 2008/ Beginning 2009 61 Sandwell and West Birmingham Acute NHS Trust 2009 368 West Hertfordshire Hospitals NHS Trust 2010 280 East and North Hertfordshire NHS Trust 2010 110 Papworth Hospitals NHS Foundation Trust End of 2008/ beginning 2009 125 Royal Liverpool Children's Hospital NHS Trust 2009 235 Mersey Care NHS trust 2009 170 Royal Liverpool and Broadgreen University Hospitals NHS Trust 2009 477 Birmingham and Solihull MH Trust (Yardley Green) 2009 45
Once an NHS body has signed a PR or LIFT contract, the financial terms of the loan raised by the private sector consortium counterparty are set and fixed. The overall cost of the project to the NHS will not change (unless the NHS wants to make a change to its own requirements). PFI contracts deal comprehensively with the possibility of early termination due to contractor default, including through insolvency, in order to protect the public interest.
The Government's policy continues to be that PFI, LIFT and other public-private partnerships should be used to deliver public services when this offers value for money. This is assessed on a case by case basis at the appropriate approval point for each scheme.